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Investment Firm Buys IBM's Health Care Data Business
In a deal announced last month, IBM is selling the data and analytics technologies from its Watson Health business to global investment firm Francisco Partners.
Although terms of the sale were not disclosed, some analysts estimate it to be worth more than $1 billion.
"Through this transaction, Francisco Partners acquires data and analytics assets that will benefit from the enhanced investment and expertise of a healthcare industry focused portfolio," said IBM Senior Vice President Tom Rosamilia in a prepared statement.
As part of the deal, Francisco will inherit from IBM "extensive and diverse data sets and products, including Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings."
According to its Web site, Francisco Partners touts investments in over 400 tech companies, many of them in the health care industry, such as GoodRx, Zocdoc and Trellis.
"We have followed IBM's journey in healthcare data and analytics for a number of years and have a deep appreciation for its portfolio of innovative healthcare products," said Francisco Partners Co-President Ezra Perlman. "IBM built a market leading team and provides its customers with mission critical products and outstanding service."
IBM's Rosamilia framed the spinout of his company's health care data technology as a return to basics for Big Blue -- meaning, cloud and artificial intelligence (AI).
"Today's agreement with Francisco Partners is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and AI strategy. IBM remains committed to Watson, our broader AI business, and to the clients and partners we support in healthcare IT."